ICOP Digital Reports Record Revenue Growth in 2006
Sales Up 276% in 2006; 446% in Comparative Fourth Quarter; and 85% on Sequential Quarter-Over-Quarter Basis
LENEXA, Kan., March 22 -- ICOP Digital, Inc. , an industry-leading company engaged in advancing digital surveillance solutions, today announced financial results for the three and 12-month periods ended December 31, 2006.
Financial highlights for the three months ended December 31, 2006 compared to the three months ended December 31, 2005:
-- Revenues rose 446% to $2.9 million, up from $531,000. On a sequential
quarter-over-quarter basis, revenues increased 85% compared to $1.6
million reported for the three months ended September 30, 2006.
-- Net losses decreased to $813,000, or $0.12 loss per basic and diluted
share, from $1.2 million, or $0.24 loss per basic and diluted share.
When compared to the $896,000 net loss posted for the third quarter of
2006, net loss in the fourth quarter also declined.
Financial highlights for the 12-months ended December 31, 2006 compared to the 12-months ended December 31, 2005:
-- Revenues climbed 276% to $6.62 million from $1.76 million.
-- Gross profit margins improved, rising to 42.3% from 40.3%.
-- Net losses were $3.52 million, or $0.58 loss per basic and diluted
share, increasing from $2.90 million, or $0.92 loss per basic and
diluted share.
As of December 31, 2006, cash and accounts receivable totaled approximately $9.9 million, working capital was approximately $12.4 million and total shareholders' equity was approximately $13.3 million.
"We are immensely pleased with the strong top line growth we experienced in 2006 and the marked success we achieved in our efforts to penetrate the nationwide law enforcement market. After winning customers in 48 states, our remarkable sales growth was punctuated in December by the receipt of several purchase orders from both mid-sized and metropolitan agencies," stated Dave Owen, Chairman and Chief Executive Officer of ICOP. "With plans to launch a very ambitious product expansion strategy in the second quarter of this year, providing for the introduction of the ICOP Model 20/20-W(TM), our next generation in-car video solution providing for live streaming capability; ICOP Guardian(TM) stationary IP camera; and ICOP LIVE(TM) an industry first in live video streaming between patrol cars, buildings and agency headquarters, ICOP is well positioned to materially extend its leadership in the advanced surveillance industry in 2007."
Continuing, Owen added, "We also expect the current year to be defined by strong sales growth in the international arena. Following our ongoing negotiations in collaboration with our valued distributors in the Middle East, Australia and South America, we are hopeful that we will be announcing key customer wins in these and other regions of the world in the months ahead."
About ICOP Digital, Inc.
ICOP Digital, Inc. protects people, assets and profits, providing a Veil of Protection(TM) for our nation's communities with innovative, mission- critical security, surveillance and communication solutions. The Company engineers, manufactures and markets mobile and stationary surveillance products for use in the public and private sectors, and facilitates the delivery of live video to first responders. The ICOP Model 20/20(R), ICOP's flagship product, is the leading digital in-car video recorder system for law enforcement. The ICOP Guardian(TM) is a stationary IP camera that records high quality video images on a local server, and is capable of activation through several triggers. ICOP LIVE(TM) delivers live streaming video to and from first responder vehicles and headquarters, empowering first responders with enhanced situational awareness, helping to optimize the outcome of a crisis. (GSA Contractor)
For more information, please view the following video presentations at http://www.icopdigital.com/why_icop.html and http://www.icop.com/veil.html, or visit http://www.icop.com/.
ICOP DIGITAL, INC. BALANCE SHEET
DECEMBER 31, 2006 - Audited
Assets
Current assets:
Cash $ 7,675,296
Accounts receivable, net 2,233,750
Inventory, at cost 3,082,770
Prepaid expenses 121,698
Total current assets 13,113,514
Property and equipment, less accumulated
depreciation of $361,342 (Note 3) 840,357
Other assets:
Deferred patent costs 77,620
Security deposit 15,000
$14,046,491
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 181,517
Accrued liabilities 347,648
Unearned revenue 209,439
Total current liabilities 738,604
Shareholders' equity
Preferred stock, no par value; 5,000,000 shares
authorized, no shares issued and outstanding --
Common stock, no par value; 50,000,000 shares
authorized, 7,229,481 shares issued and outstanding 26,997,100
Accumulated other comprehensive income (loss), net of tax --
Retained deficit (13,689,213)
Total shareholders' equity 13,307,887
$14,046,491
ICOP DIGITAL, INC.
STATEMENTS OF OPERATIONS
Audited
Years Ended December 31,
2006 2005
Sales, net of returns and allowances $ 6,620,781 $ 1,760,421
Cost of sales 3,819,842 1,051,570
Gross profit 2,800,939 708,851
Operating expenses:
Debt issue expense -- 470,000
Selling, general and administrative 5,535,989 2,259,176
Research and development 903,125 796,082
Total operating expenses 6,439,114 3,525,258
Loss from operations (3,638,175) (2,816,407)
Other income (expense):
Realized income/(loss) on
foreign currency translation 29,982 (26,909)
Interest income 120,329 52,752
Interest expense (30,381) (107,234)
Loss before income taxes (3,518,245) (2,897,798)
Income tax provision -- --
Net loss $(3,518,245) $(2,897,798)
Basic and diluted net loss per share $ (0.58) $ (0.92)
Basic and diluted weighted average
common shares outstanding after
consideration of reverse stock
split March 10, 2005 6,034,032 3,156,538